Survey: Half of Workers Ill Prepared to Stop
Work

January 20, 2005 (PLANSPONSOR.com) - In yet another
example of a growing realization of the financial challenges
ahead, nearly half (45%) of US workers do not believe they
will have enough money set aside for a comfortable
retirement.

A news release from Hudson Highland Group, North
America – an HR services outsourcing firm – said the
survey found that three-fourths (74%) of US workers plan
to work at least part time during their retirement years.
Forty-one percent of workers plan to retire before age of
65.

Respondents were split about their employers’
education/advice efforts. Though nearly half (47%) of
employees believe that their company does a good or
excellent job educating them about retirement planning
and benefits, a nearly number rate their organizations as
fair or poor. Wealthier individuals tended to give more
complimentary appraisals.

Nationally, workers aren’t counting on company
pensions and Social Security to provide significant
retirement income. Half (52%) report that personal
savings will provide the biggest share of their income
after they stop working, while only one in five expect
company pensions to play that role. Just over a fifth
(21%) of workers expect Social Security to comprise the
biggest chunk of their retirement income.

The survey found that a third (31%) of workers 50
to 64 years old, who are fast approaching traditional
retirement age, anticipate that Social Security will
provide the biggest income contribution, although a
plurality (40%) expect personal savings to fill that
role. However, the younger workforce (18 to 29) is no
longer taking Social Security for granted. A scant 14%
expect it to provide the biggest share of their
retirement income. Workers under 40 are also more likely
to predict they will not work during their retirement
years than those 40 and older, according to the
survey.

“As companies cut back on traditional pensions and
health care coverage for retirees, it is clear that the
workforce will have to turn to their own savings and/or
keep working to sustain themselves during retirement,”
said Jeff Anderson, senior vice president of Hudson,
North America, in the news release. “As individuals stay
in the workforce longer – either by choice or necessity –
organizations would be well-served by creating programs
and training that recognize the value of older
workers.”

The Hudson retirement survey is based on a national
poll of 2,170 US workers and was compiled by Rasmussen
Reports, LLC, an independent research firm. More
information about Hudson is at More information is
available at
http://Hudson.com.